Hello ESG in VC followers,
Welcome to the 2nd edition of ESG in VC Insights. Curated with 🖤 every month by ESG in VC team.
ESG in the News
A new report from NPG Capital finds that start-ups and scale-ups linked to the UN’s Sustainable Development Goals (SDGs) are both less likely to fail and more likely to attract capital than non-impact firms based on an analysis of 2,000+ businesses
Following the U.S. Supreme Court’s ruling to overturn Roe v. Wade companies must take swift action to protect the reproductive rights of their employees. The decision now highlights serious questions for investors and rating agencies regarding how country and company-specific stances on reproductive health rights should be accounted for from an ESG perspective.
US public companies have faced a record number of shareholder votes on ESG proposals this year. While the number of sustainability-related proposals grew by 41% from 2021, average support witnessed a decline, particularly among the most ambitious proposals.
Women have driven a boom in entrepreneurship in the US over the past 2 years, accounting for nearly half of all entrepreneurs in 2021. Child care was a key driver with over a quarter of female entrepreneurs with school-age children citing the need for increased flexibility as schools and daycares continued to deal with disruptions.
Many Western nations are increasingly looking to nuclear power to reduce their dependence on oil as well as their carbon footprint. However, there will likely be significant headwinds shoring up the talent and infrastructure to do so. At the same time, EU regulators are working to block gas and nuclear energy from being labeled as green solutions.
The Regulatory Report
The EU passes reformed regulation governing companies’ sustainability disclosures mandating the development and adoption of ESG corporate sustainability reporting standards
In a blow to climate change efforts, Germany pushes the G7 to back-pedal its commitment to end the financing of overseas fossil fuel projects by the end of 2022
The Biden-Harris administration proposes new standards for a National Electric Vehicle Charging Network aiming to make charging EVs more convenient and affordable across America
The SEC is investigating several Goldman Sachs asset management funds labeled as “ESG” and “clean-energy” over concerns that their labeling is misleading investors
Noteworthy Raises in E
🇬🇧 UK
AgTech start-up, Materra, a UK-based developer of climate-resilient and sustainable farming systems to grow cotton, raises $4.5 million in seed funding led by H&M Group and Invest FWD
🇪🇺 EU
Supply Chain Tech start-up, EcoVadis, a Paris-based provider of sustainability ratings, intelligence, and collaborative performance tools for global supply chains, raises $200 million from CVC Growth Partners
Mobility Tech start-up, Zipp Mobility, a Dublin-based shared e-bike platform intended to reduce both urban congestion and emissions, raises €6.1 million led by Fasanara Capital
🇱🇷 US
Renewable energy start-up, Amogy a New York-based provider of emission-free, high-energy-density power fuel aiming to decarbonize transportation, raises $46 million led by SK Innovation
Robotics start-up, Impossible Mining, a California-based developer of robotics systems designed to responsibly harness precious metals used in clean energy technologies from the ocean floor, raises $10.1 million in seed funding led by Justin Hamilton
Mobility start-up, Overair, a California-based manufacturer of EV takeoff and landing aircrafts, raises $145 million of Series B funding from Hanwha Systems and Hanwha Aerospace
Nanotechnology start-up, Moleaer, a California-based developer of nanobubble generators designed to deliver sustainable and chemical-free water quality improvement, raises $47.5 million in Series C funding led by Husqvarna and Apollo Global Management
ClimateTech start-up, C-Zero, a San Francisco-based developer of methane pyrolysis technology, raises $34 million led by South Korea’s SK Gas
Construction software start-up, Green Badger, a Georgia-based developer of LEED construction software intended to automate green construction compliance, raises $1.1 million led by Shadow Ventures
Noteworthy Raises in S
🇬🇧 UK
HealthTech start-up, Psyomics, a Cambridge-based developer of digital mental health assessments and triage technologies, raises £2.4 million in funding led by Parkwalk Advisors
Mental health treatment start-up, Clerkenwell Health, a London-based firm aiming to mainstream the use of psychedelic-based drugs in the treatment of mental health issues such as depression, PTSD, and bipolar disorder, raises its seed round
🇪🇺 EU
Blockchain and HealthTech start-up, Molecule, a Switzerland-based developer of a decentralized pharma ecosystem designed to disrupt drug development, IP management, and fundraising for drug discovery, raises a $13 million seed round led by Northpond Ventures
🇱🇷 US
Web3 and FinTech start-up, Nume Crypto, a San Francisco-based developer of an online payment system designed to drive financial inclusion at a global scale, raises a $2 million seed round led by Sequoia
EdTech start-up, Arist, a San Francisco-based remote learning platform designed to deliver courses entirely via text message and WhatsApp, raises a $15.2 million round
EdTech and AI start-up, Transfr, a New York-based apprenticeship platform designed to create training simulations in virtual reality, raises $35 million of Series B funding led by Lumos Capital
FemTech start-up, Visana Health, a Minnesota-based platform supporting women suffering from severe menstrual pain, raises $2.6 million in seed funding led by SWL Healthcare Ventures
HRTech start-up, Unify Jobs, an Ohio-based equitable hiring technology platform, raises $4.5 million in seed funding led by North Coast Ventures
Noteworthy Raises in G
We’re always on the lookout for new start-ups addressing governance challenges – If you know of any you think should be highlighted, please reach out!
Latest Funds Announcements
Brookfield Asset Management raises $15 billion for its debut Global Transition Fund, the largest fund of its kind to date, that will be deployed to transform carbon-intensive industries and develop and scale clean energy solutions
Temasek commits $5 billion to establish, GenZero, an investment platform aiming to drive decarbonization via its investments in technology-based solutions, nature-based solutions, and carbon ecosystem enabling technologies
The new Chicago area-based VC firm, Colorful Capital, is launched to bridge the financing gap to LGBTQ+ founders, who currently receive less than 1% of VC funding
Impact-focused North Sky Capital launches its newest fund, Clean Growth VI, its latest vehicle in its impact-focused secondaries strategy with a $350 million
LGT Capital Partners closes on its $550 million debut impact-focused private equity fund, Crown Impact, to invest across the themes of climate change, inclusive growth, and healthcare, closing well above its initial $350 million target well above